President Obama: Hey! It's good to see you, and hello,
Austin! I love Austin, Texas.

Audience Member: We love you!

President Obama: Thank you. It's
just good to be back.

Moderator Smith: Nice to have you here. Welcome. Welcome to Austin. Welcome to
South by Southwest. Letís make a little news. You stopped at
Torchyís
on the way in from the airport.

President Obama: I did.

Moderator Smith: You did. Would you please share with the world what you told me
backstage -- your order? Perfectly in keeping with your political
views.

President Obama: I ordered the Democrat. But then I ordered
a Republican and an Independent, because I wanted to give all people a
proper hearing. I wanted to be fair.

Moderator Smith: Bipartisan in tacos as in life.

President Obama: That's exactly right.

Moderator Smith: That's how it goes. Mr. President, you're very nice to be here
with us today. And you came for a purpose. You want to accomplish
something. You said as much in your weekly radio address last weekend.
I got the opportunity to hear it. Some people in the room have not
heard it. For their benefit, and people outside the room, would you say
why you're here? Make the pitch in miniature, please.

President Obama: Well, first of all, I'm here because I like excuses to
come to Austin, Texas. And that's a good enough reason.
And I want to acknowledge your Mayor, Steve Adler, who bought tacos
with me.

I normally don't do this, but I'm going to embarrass somebody -- I'm
going to also acknowledge the Chancellor of the Texas System because
heís one of my favorite people and a truly great American -- Bill
McRaven, who I think is over there. It's pretty rare where
a chancellor of a university system can really mess you up.
So, in case any of the students are wondering, don't mess with your
chancellor. But I knew him as Admiral, and he served
America as well as anybody served it.

Look, we are at a moment in history where technology, globalization, our
economy is changing so fast. And this gathering, South by Southwest,
brings together people who are at the cutting-edge of those changes.
Those changes offer us enormous opportunities but also are very
disruptive and unsettling. They empower individuals to do things that
they could have never dreamed of before, but they also empower folks who
are very dangerous to spread dangerous messages.

And part of my challenge since I've been President is trying to find
ways in which our government can be a part of the positive change that's
taking place and can help convene and catalyze folks in the private
sector and the non-profit sector to be part of the broader civic
community in tackling some of our biggest challenges.

And just three things that I talked about during my weekly address where
this group, I think, is prime to make a difference. Number one, we're
spending a lot of time figuring out how can we make government work
through technology, digital platforms, and so forth. So, for example,
we've reduced the FAFSA form process where you apply for student aid by
about two-thirds just by digitalizing it, putting it online, making it a
little more common sense. We have made it now possible to apply for
Social Security online in ways that couldn't be done before. Across
agencies, we're interacting every day with our government, and the
question is, how do we make that work better? Because an
anti-government mentality grows if people feel frustrated because
theyíre not getting good service.

The second thing that these new technologies allow us to do is to tackle
big problems in new ways. We had a conference in Washington a few weeks
back on what we're calling precision medicine -- the capacity today to
potentially cure diseases because we understand the human genome and we
understand that a cure for me may not be the same as a cure for you.
And thereís incredible research taking place all around the country,
but we haven't gathered all that data together to make sure that the
whole is greater than the sum of its parts.

And number three, we want to make sure that we're using big data,
analytics, technology to make civic participation easier. Voters --
increasing voting rights and making sure that people are informed about
who theyíre voting for and why theyíre voting. Making sure that
community organizations or activists are able to meet and help to shape
our society in new ways.

So the reason I'm here really is to recruit all of you. It's to say to
you as I'm about to leave office, how can we start coming up with new
platforms, new ideas, new approaches across disciplines and across skill
sets to solve some of the big problems that we're facing today.
Because, I've said this before, I said this at the State of the Union,
the most important office in a democracy is the office of citizen. And
right now, with all the talent that's out there, our government is not
working and our politics isn't working as well as it should -- the only
way we're going to solve that is make sure that we're getting citizens
involved in ways that we haven't up until now.

Moderator Smith: Mr. President, the theory of bringing tech more closely aligned
with government in solving problems is great, but the reality is that
the culture of the tech sector and the culture of government could not
be more different. Government is big and bloated and slow and
risk-averse, and it's run on outmoded systems and outmoded equipment.
Tech is sleek and streamlined, and fail-fast and enamored of the new
and the shiny. How do you take these two things that seem culturally to
be so unalike and put them together in a way where they can and want to
work together?

President Obama: Well, let me give you an example of the big and the
bloated and the frustrated. You may recall that I passed this law
called the Affordable Care Act to sign people up for health care.
And then the website didnít work.

Moderator Smith: I heard that.

President Obama: And this was a little embarrassing for me because I was
the cool, early adaptor President.

Moderator Smith: Right. Not exactly an advertisement for --

President Obama: And my entire campaign had been premised on having
really cool technology, and social media and all that. Well, hereís
what happened, was that the procurement systems, the specifications, the
way that software was built in government was adapted for the age when
procurement was for buying boots or buying pencils or buying furniture
as opposed to buying software.

And so thereís an example of an outdated system -- bloated, risk-averse,
not working well. Hereís what happened as a consequence of
healthcare.gov breaking down, though -- we had to bring in a SWAT team
of all my friends from Silicon Valley and from Austin and some of the
best software engineers in the world to come in and fix it -- which we
did in about three, four monthsí time.

And what we realized was that we could potentially build a SWAT team, a
world-class technology office inside of the government that was helping
across agencies. We've dubbed that the U.S. Digital Services. And
we've got some of the top talent from Google, from Facebook, from all
the top tech companies. These folks are coming in, in some
cases, for six months, in some cases for two years -- and they are
making an enormous difference in making sure that veterans are getting
services on time, fixing outdated systems, making sure that agencies
like the Small Business Administration that has been clunky, is
redesigning itself so that if an entrepreneur wants to start up a
business here in Texas, that they can go to one spot and within a day
theyíve handled all the regulatory red tape that used to require them
maybe months to navigate.

Now, the folks who are working in this Digital Service, theyíre having a
great time, and in part because they are harnessing incredible skills to
a purpose where they know that millions of people can be helped. And
what theyíll tell me is that as long as they feel that theyíve got a
President and somebody whoís providing some air cover, thereís no system
that they canít get in there and work and change and make it
significantly better.

So part of my job is to try to institutionalize that over the next
several years. And I want to make sure that the next President and the
federal government from here on out is in constant improvement mode and
weíre constantly bringing in new talent and new ideas to solve some of
these big problems. It can be done. It requires some effort, but
everything requires some effort.

Moderator Smith: Because, Mr. President, you know, I talked to tech people in
advance of your coming, and I said, if you were asked by the President
or by the administration to come in and work with them, what would the
conditions need to be that would make it possible? And they said, well,
we would need some kind of a carve-out, some kind of flexibility from
rules and regulations. We would be willing to work with the government,
and maybe we would then donate back the IP to the public sector. Or if
we want to give some of the employees from our payroll the opportunity
to work in government, maybe we could get -- as you would with another
kind of donation -- some sort of a tax break back. Weíd be willing to
work, but the government would have to come at least a little bit in our
direction. Youíre saying youíre willing to do that?

President Obama: It is currently happening. And the opportunities are
there. But I want to focus on the fact that there are different ways
for people here to get engaged. Itís not just you coming in -- although
we want to create a pipeline where thereís a continuous flow of talent
that is helping to shape the government. The other thing that weíre
doing, though, is weíre also convening people to solve problems, and
they may in their existing roles be able to work together to make a huge
difference.

Iíll give you a specific example. Before I came in here, I met with an
incredible group of people -- entrepreneurs, moviemakers, organizations,
tech leaders -- to talk about how we make a real difference on
countering violent extremism. It's not enough if we're going to defeat
ISIL just to take out their leadership or to control certain
territories, if, in the virtual world, they are consistently reaching
kids here in the United States or elsewhere in the world and recruiting
them and twisting their minds to do terrible things. We've got to be
able to penetrate that.

For good reasons, we don't want the government to be the lead on that.
First of all, we're not credible with the people who might be receiving
those messages. Second of all, it's dangerous if the government gets in
the business of propaganda. So what I said to them was we'll help
convene and put you guys in a room together. Where there are resources
that are necessary, we can help provide it. But, essentially, you
figure out how we can reach young people who might be vulnerable to
extremist messages.

You tell us, based on the analytics and the data and the algorithms that
you're working with on a day-to-day basis to sell products, what is it
that's going to really penetrate here. How can we amplify powerful
stories that are already taking place so that there are platforms that
can reach as many people as possible?

Moderator Smith: So whether you solve the problem or they solve the problem, itís
all good?

President Obama: Exactly. Iíve give you a second example, and that is
the issue of voting -- I mentioned this earlier. Weíre the only
advanced democracy in the world that makes it harder for people to vote.
No, I hear laughing, but itís sad. We take enormous pride
in the fact that we are the worldís oldest continuous democracy, and yet
we systematically put up barriers and make it as hard as possible for
our citizens to vote. And it is much easier to order pizza or a trip
than it is for you to exercise the single most important task in a
democracy, and that is for you to select who is going to represent you
in government.

Now, I think itís important for a group like this, as we come up to an
election, regardless of your party affiliation, to think about how do we
redesign our systems so that we donít have 50 percent or 55 percent
voter participation on presidential elections, and during off-year
congressional elections, youíve got 39 or 40 percent voting.

Moderator Smith: Mr. President, youíre in the state with the worst voter turnout in
the country over the last few years.

President Obama: By coincidence.

Moderator Smith: We would take 55 percent
tomorrow if we could get it.

President Obama: There is a reason Iím bringing this up.
But itís not just Texas. And so one of the things that weíre doing is
engaging folks who are already doing interesting work in the online
space, how can we create safe, secure, smart systems for people to be
able to vote much easier online, and what are the technologies to help
people get aware of what theyíre voting about, who theyíre voting for --
thatís, again, an issue where you donít want the federal government
engineering all that. But what we can do is to have the incredible
talent thatís represented in this auditorium really spend time thinking
about that and getting to work on it.

Moderator Smith: But governments, Mr. President, governments need to play a role in
it. They have to pass legislation that enables some of these things.

President Obama: Yes.

Moderator Smith: So in Texas, again, a state with terrible voter turnout every time,
we broke records on primary day but we still had the second worst voting
age participation of any state thatís voted so far. We canít get out of
our own way. You need, in Texas, legislation that enables this. We
wonít even allow people to register to vote -- register to vote, not
vote -- register online in Texas -- register online. We can pay our
taxes, we can hold our phone up at the supermarket to pay with our
credit card, but somehow online voter registration is perceived to be
insecure, or same-day registration.

President Obama: Itís not insecure. Itís done because the folks who are
currently governing the good state of Texas -- arenít
interested in having more people participate.

So obviously youíve got to make a political argument about why this is
important, and not every state is going to move along the same
direction. But I will tell you that if we can create more and more
models that show that if made easier, more people vote, and that it is
seamless and that it is secure, and jurisdictions that are willing to
adopt and support these new mechanisms are in place, and if we are
building more models of civic engagement and using the tools and
technology that weíre using to buy things to participate in
self-governance, then over time -- look, Texas is never going to be an
early adapter of what Iím talking about here. But over
time, pressure builds for us to create systems that make government more
responsive and make it work better.

Moderator Smith: Let me stay with Texas and touch on something you alluded to
earlier -- that there are a lot of people in the world today who donít
like government, donít trust government, donít think government can do
good. You are in Texas, the hating-on-government capital of the Western
world, right? We hate government so much weíd rather have
no government, except we then wouldnít have anybody to sue.
So we need government for at least one reason. How do you
change the perception that government can do good at a moment when
people have decided government canít do good?

President Obama: Well, part of it is the fact that when government does
great things, we take it for granted and itís not a story. I mean,
every day, government is delivering for everybody in this room, whether
you know it or not. I can find the fiercest libertarian in the room who
despises every level of government, thinks itís all corrupt, but theyíre
checking the weather on their phone, and lo and behold, it turns out
that thereís a government satellite out there that is facilitating that.

Moderator Smith: Thatís government.

President Obama: And theyíd be really irritated if they couldnít figure
out whether it was going to be 70 and sunny or 60 and rainy tomorrow.
But thatís not reported as government. We just take for granted, of
course, there are roads, and, of course, thereís a geo-satellite system
and, of course, we have Special Forces who are making sure that folks
arenít blowing up our buildings. Well, part of our task is to tell a
better story about what government does.

Now, government is often its own worst enemy in the sense that it has to
also be more responsive where people interact in a direct way with
government. Iíve said before that I could change the politics of
America faster than just about anything if I could just take control of
all the DMVs in the country. Because if somebody goes to
get their license renewed and it takes them two hours --

Moderator Smith: And they walk away frustrated.

President Obama: -- and everybody is kind of surly --

Moderator Smith: Right.

President Obama: -- thatís their impression of government.

Moderator Smith: Yeah.

President Obama: Or if their primary interaction with government is the
IRS, you just donít have a good association with government when youíre
writing that check. But if we make it easier, if itís being done
online, if suddenly, you have the capacity to interact with government
in a way that also gives you some feedback about how youíre tax dollars
are being spent or why this is important, or what youíre doing, so that
itís a two-way exchange as opposed to something that feels distant and
that you have no control over, then peopleís attitudes change.

Now, hereís the problem, and this is why politics matter. If there are
those who despise government -- oftentimes because the absence of
government allows them to pollute, or keep as much money as they can, or
not have to answer to consumers who are complaining about their
practices -- if they are controlling those who are currently in
government and government gets starved of resources, then it can be a
self-reinforcing notion that, in fact, government doesnít work because
itís being starved.

A great example of this, by the way, I met with financial regulators
this week to just get a report back on how weíre doing on Wall Street
reform. One of the things that the left and the right agree on is that
after the financial crisis, nothing changed, and all those folks on Wall
Street who had done these terrible things just got away with it, and we
didnít change the system and itís just the way it is now. Well, the
truth of the matter is, actually, a lot changed. The banks have been
forced to capitalize much more. Some of the shoddy practices have been
shut down. We set up a Consumer Finance Protection Bureau that prevents
some of the mortgage practices -- that had ended up not
only hurting individuals but also destabilizing the entire system.
Derivatives now have to be set up on a clearinghouse platform that
allows oversight in a way that didnít exist before.

The financial system is much more stable than it used to be. And too big
to fail actually is much less likely, because if somebody engages in
reckless practices we can now unwind them without them bringing down the
entire system.

Moderator Smith: So how come we donít know it then?

President Obama: Well, first of all, thatís not a story that is
interesting to people. Whatís more interesting is a cynical view that
terrible things happened and nothing got changed. And thatís how it
gets reported both in popular culture as well as in the media.

But the second thing thatís happened is, where itís not -- where we
still have work to do in this space -- the main reason we have work to
do in this space is because this Congress has prevented oversight
agencies like the FCC and the CFTC from having enough staff and
resources to be able to enforce as well as they could some of the laws
and the rules that are put in place.

And so we go back to the need for civic engagement. We cannot solve the
problems in government and we cannot solve the problems that we face
collectively as a society unless we, the people, are paying attention.
And in an age in which people are getting information through digital
platforms, through the Internet, where peopleís attention spans have
shrunk, it is critical that all of you who are shaping this environment
are spending time thinking about how are we getting people -- how are we
getting citizens engaged, and you, yourselves have to be engaged and
spend some time thinking about it.

It doesnít mean you have to do it full-time. It doesnít mean that you
have to run for office yourself. But it does mean that whatever your
field is, there is a way right now for you to engage and participate to
take this democracy back in ways that we have not seen in a very long
time.

Moderator Smith: What youíre preaching, Mr. President, again -- nobody will take
issue with the idea of more civic engagement in a digital age. But the
question is whether everybody, all of us in this country, are in the
same digital age, right?

Youíre in a state that is seeing rapid changes in its population. Weíll
soon be Hispanic majority. Well, in this state, as in a lot of other
states, the digital divide -- access to Wi-Fi, access to devices
continues to be an enormous problem. Fifty percent of adults in Hispanic
households have no access to Internet at home. Fifty-four percent of
African Americans have access, but 46 percent do not. Many more white
households have access to the Internet than do non-white households. We
know that we have this massive digital divide in this country, in Texas
and elsewhere. Shouldnít the government, before we start providing all
the civic engagement through the digital space, make sure that everybody
is in the digital space first?

President Obama: Which is, actually, exactly what weíve been trying to do
over the last several years. When we passed the Recovery Act -- the
stimulus that was very controversial at the time and that continues to
be criticized by the other party, despite the fact that unemployment is
now below 5 percent -- and we avoided a Great Depression.
Thanks, Obama. But embedded in
that was a massive investment in making sure that communities that had
been left out of broadband and Wi-Fi were reached. And we have made
enormous progress in extending more and more Internet access --
high-speed Internet access to communities all across the country.

A second example -- we set up something called ConnectED, where our goal
-- and weíre on track to meet this by 2018 -- is that 99 percent of
classrooms have access to high-speed wireless. And the way weíve done
that, in part, is through federal spending, but what weíve also done is
weíve partnered with an array of companies.

Moderator Smith: Right, private industries.

President Obama: Private industry has really stepped up. And so part of
the task -- youíre right that weíve got to make sure that, given the
power of this space, everybody is plugged in. But one of the great
tricks to all this is making sure that whatever government is doing is
then supplemented with and enhanced by a private sector and nonprofit
sector that are ready to step up. And itís not just, by the way,
getting a line in or Wi-Fi there. Itís also training teachers. Weíve
set up something called -- well, open book? Somebody out here --

Audience Member: Open eBooks.

President Obama: There you go, Open eBooks. I knew there
was somebody in the audience whoíd know about this. To
make sure that kids in places that donít have a lot of books that
suddenly they have access to this enormous e-library, and that that
becomes folded into the mechanics and the infrastructure thatís been set
in place.

Moderator Smith: Mr. President, very good, itís important to have wired classrooms,
but part of the problem is that 70 percent of homework assignments by
one measure, given by teachers, require some Internet access. So itís
one thing to wire classrooms; the problem is homes.

There was a story in The New York Times about a month ago that had a
couple of kids from McAllen, a brother and sister, standing outside
their school building into the wee hours of the night having to do their
homework on their phones, using the Wi-Fi from the school after hours
because they had no Wi-Fi at home. This is 2016. It just seems crazy.

President Obama: Which is why weíve set up something called Opportunity
Networks that is going to go into public housing, rural communities,
low-income communities to make sure that access is available precisely
so those young people can do the work.

Moderator Smith: Youíre going to try to solve this problem?

President Obama: I am trying to solve every problem. But here --

Moderator Smith: Youíve got to have a goal, I understand.

President Obama: But hereís the point that I want to make. These are
solvable problems, but itís not a matter of us passively waiting for
somebody else to solve it. And thatís part of the mindset that Iím
trying to break. I tried to break it back in 2007, 2008, when I ran for
this office. As you will recall, the slogan was not ďYes, I canĒ -- it
was ďYes, We Can.Ē And we could sit here and you could list out an array
of problems, inequities that have to be addressed. What Iím saying is,
number one, government actually works better in so many areas than we
give it credit for because we tend to focus on those areas where itís
not working as well.

Number two, part of the reason that government doesnít always appear to
provide a satisfactory solution is because government has to take on the
hardest problems. The private sector doesnít have to figure out how to
educate the poorest kids. The private sector doesnít have to figure out
how to protect us from a terrorist cell. If you have aging, sick
veterans, the private sector may not serve them as well, or to figure
out how do we get homeless off the streets.

So the toughest problems are government problems. And finding solutions
to those things can take time. And so youíre never going to get 100
percent satisfaction the way you might get that perfect cup of coffee,
the perfect latte, or the perfect -- the lowest price on your ticket to
Cancun -- because these are harder problems.

But the third point that Iím trying to make here is that if we can
reconceive of our government so that the interactions and the interplay
between private sector, nonprofits, and government are opened up, and we
use technology, data, social media in order to join forces around
problems, then thereís no problem that we face in this country that is
not soluble. And the key is to have incredible talent, as is gathered
here, to focus on it.

Itís not enough just to focus on whatís the cool next thing. Part of
what we have to do is to figure out how do we use and harness the cool
next thing to make sure that everybody in this country has opportunity.
And to make sure that weíre dealing with our environment in an
effective way.

Moderator Smith: I want to use and harness the time we have. Weíve got 10 minutes
left. We started a little late.

President Obama: Nice segue. That was good.

Moderator Smith: Thank you. I appreciate it. Took the baton here, Mr. President.
I took the baton.

President Obama: It was good. It
was good.

Moderator Smith: We asked for questions from regular folks through the Texas Tribune
website. Weíve got a few of those. And I want to ask you about a
couple of those. Some are related to the topics weíve been talking
about, and some are not. Iím going to go quickly so that we use the
time we have.

A bunch of people wanted me to ask you about Apple and the situation
with Apple and the FBI. Youíre trying to persuade the tech
community that they should work with government. But it looks to the
tech community -- at least some in the tech community -- that government
is the enemy of the tech community in the way that itís dealing with
Apple. Some in the tech community.

The question I want to ask you is, putting aside the specifics of this
specific case, the legal fight between the company and the FBI, there
are big questions around the idea of how you balance the need for law
enforcement to conduct investigations and the needs of citizens to
protect their privacy. This is the old privacy versus security debate.
Mr. President, where do you come down on the privacy versus security
debate?

President Obama: Well, first of all, I canít comment on the specific
case. So letís set that aside.

All of us value our privacy, and this is a society that is built on a
Constitution and a Bill of Rights and a healthy skepticism about
overreaching government power. Before smartphones were invented, and to
this day, if there is probable cause to think that you have abducted a
child, or that you are engaging in a terrorist plot, or you are guilty
of some serious crime, law enforcement can appear before your -- at your
doorstep and say, we have a warrant to search your home, and they can go
into your bedroom and into your bedroom doors and rifle through your
underwear to see if thereís any evidence of wrongdoing.

And we agree on that, because we recognize that just like all of our
other rights -- freedom of speech, freedom of religion, et cetera --
that there are going to be some constraints that we impose in order to
make sure that we are safe, secure and living in a civilized society.

Now, technology is evolving so rapidly that new questions are being
asked. And I am of the view that there are very real reasons why we
want to make sure that government cannot just willy-nilly get into
everybodyís iPhones that is full of -- or smartphones that are full of
very personal information and very personal data. And letís face it,
the whole Snowden disclosure episode elevated peopleís suspicions of
this. So does popular culture, by the way, which makes it appear as if
I'm in the Sit Room and I'm moving things --

Moderator Smith: Youíve been watching Homeland.

President Obama: Thereís like half a fingerprint and half an hour later,
I'm tracking the guy in the streets of Istanbul.

Moderator Smith: It's not really that cool?

President Obama: It turns out it doesnít work that way. Sometimes I'm
just trying to get a connection. But, look,
that was a real issue. I will say, by the way, that -- and I don't want
to go too far afield -- but the Snowden issue vastly overstated the
dangers to U.S. citizens in terms of spying, because the fact of the
matter is, is that actually our intelligence agencies are pretty
scrupulous about U.S. persons, people on U.S. soil. What those
disclosures did identify were accesses overseas with respect to people
who are not in this country.

A lot of those have been fixed. Don't take my word for it. There was a
panel that was constituted, an independent panel that just graded all
the reforms that we set up to avoid those charges.

But I understand that that raised suspicions. All right. So we're
concerned about privacy. We don't want government to be looking through
everybodyís phones, willy-nilly, without any kind of oversight or
probable cause or a clear sense that it's targeted at somebody who might
be a wrong-doer.

What makes it even more complicated is the fact we also want really
strong encryption, because part of us preventing terrorism, or
preventing people from disrupting the financial system or our air
traffic control system or a whole other set of systems that are
increasingly digitalized is that hackers, state or non-state, can just
get in there and mess them up.

So we've got two values, both of which are important. Right?

Moderator Smith: Right.

President Obama: And the question we now have to ask is, if
technologically, it is possible to make an impenetrable device or system
where the encryption is so strong that thereís no key, thereís no door
at all, then how do we apprehend the child pornographer? How do we
solve or disrupt a terrorist plot? What mechanisms do we have available
to even do simple things like tax enforcement? Because, if, in fact,
you can't crack that at all, government can't get in, then everybody is
walking around with a Swiss bank account in their pocket -- right? So
there has to be some concession to the need to be able to get into that
information somehow.

Now, what folks who are on the encryption side will argue is any key
whatsoever, even if it starts off as just being directed at one device
could end up being used on every device. That's just the nature of
these systems. That is a technical question. I'm not a software
engineer. It is, I think, technically true, but I think it can be
overstated.

And so the question now becomes, we as a society -- setting aside the
specific case between the FBI and Apple, setting aside the commercial
interests, concerns about what could the Chinese government do with this
even if we trusted the U.S. government -- setting aside all those
questions, we're going to have to make some decisions about how do we
balance these respective risks.

And I've got a bunch of smart people sitting there, talking about it,
thinking about it. We have engaged the tech community aggressively to
help solve this problem. My conclusion so far is that you cannot take
an absolutist view on this. So if your argument is strong encryption,
no matter what, and we can and should, in fact, create black boxes, then
that I think does not strike the kind of balance that we have lived with
for 200, 300 years. And it's fetishizing our phones above every other
value. And that can't be the right answer.

I suspect that the answer is going to come down to how do we create a
system where the encryption is as strong as possible, the key is as
secure as possible, it is accessible by the smallest number of people
possible for a subset of issues that we agree are important. How we
design that is not something that I have the expertise to do.

But I caution -- I am way on the civil liberties side of this thing.
Bill McRaven will tell you that I anguish a lot over the decisions we
make in terms of how to keep this country safe, and I am not interested
in overthrowing the values that have made us an exceptional and great
nation simply for expediency. But the dangers are real. Maintaining
law and order and a civilized society is important. Protecting our kids
is important. And so I would just caution against taking an absolutist
perspective on this.

Because we make compromises all the time. I haven't flown commercial in
a while -- but my understanding is it's not great fun --

Moderator Smith: It's not great. It's not great.

President Obama: -- going through security. But we make the concession
because -- it's a big intrusion on our privacy, but we recognize it as
important. We have stops for drunk drivers. It's an intrusion, but we
think it's the right thing to do. And this notion that somehow our data
is different and can be walled off from those other tradeoffs we make I
believe is incorrect.

We do have to make sure, given the power of the Internet and how much
our lives are digitalized, that it is narrow and it is constrained and
that thereís oversight. And I'm confident this is something that we can
solve. But we're going to need the tech community -- software
designers, people who care deeply about this stuff -- to help us solve
it.

Because what will happen is if everybody goes to their respective
corners and the tech community says, you know what, either we have
strong, perfect encryption, or else it's Big Brother and an Orwellian
world -- what youíll find is that after something really bad happens,
the politics of this will swing and it will become sloppy and rushed,
and it will go through Congress in ways that have not been thought
through. And then you really will have dangers to our civil liberties
because we will have not done -- the people who understand this best and
who care most about privacy and civil liberties have sort of disengaged
or taken a position that is not sustainable for the general public as a
whole over time.

Moderator Smith: Sadly, Mr. President, the clock is telling me that we're out of
time. A lot of things I wanted to ask you. You gave a great answer on
that question, and I'm happy to have that be the last bit that we did
together. Thank you so much for being here.

President Obama: I'm the President, so I'm going to take one more minute.

Moderator Smith: You will? We'll take it.

President Obama: There are a number of different ways in which all of you
can plug into what I've been talking about here today. So if you are
interested in figuring out ways to make government services work better,
you can go to whitehouse.gov or U.S. Digital Services and find out what
theyíre doing. If you are interested in how we can make sure that
classrooms are properly connected, you can plug into what we're doing
with ConnectED.

One of my favorite projects thatís just gotten started over the last
several months is -- diapers are really expensive, and we've actually
set up a system whereby through social media and the Internet,
non-for-profits are able to make bulk purchases of diapers, save 25
percent on those, so that they can distribute them to low-income moms
and families. And it's a convergence of diaper makers and logistics
companies and Internet companies. And we sort of convened the thing,
but it's not running through a government program.

So whatever your interests are, whatever your passions are, whatever
your concerns are, we need you. And I want to underscore the fact that
in 10 months I will not have this office. It has been the great
privilege of my life, but it's not like I stop caring about the things
that I care about right now. And it's not like I'm going to stop being
involved in promoting the best, most prosperous, most peaceful, most
tolerant, most ecologically responsible America that I can.

I'll be sitting in an audience with you -- and I expect
you to step up and get involved, because the country needs you. And if
the brainpower and talent that's on display here today and throughout
this conference takes up that baton, then I'm going to be really
confident about the future of this country.